REG - Intnl Workplace Grp - 3rd Quarter Trading Statement

International WorkplaceAnnouncement

Yesterday 07:00

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RNS Number : 9994F  International Workplace Group PLC  04 November 2025

 

4 November 2025

 

THIRD QUARTER TRADING STATEMENT

 

International Workplace Group plc, the world's largest hybrid workspace
platform with a network in over 120 countries through flexible workspace
brands such as Regus, Spaces, HQ, Signature, issues its third quarter trading
statement for the three months ended 30 September 2025.

 

UNPRECEDENTED NETWORK GROWTH AND HIGHER OCCUPANCY

·      Quarterly system-wide revenue of $1.1bn, growth of 4%
year-over-year

o  Managed & Franchised: system-wide revenue growth of 36%. +83% in
recurring management fees year-over-year

o  Company-owned: occupancy continues to climb whilst maintaining RevPAR

·    Incremental investment outlined during H1 2025 has resulted in
further capital-light expansion in network and coverage, with c.40%+ increase
in both signings and openings year-over-year

o  Total Q3 2025 signings 335 (2024: 234)

o  Total Q3 2025 openings 215 (2024: 152)

·      Continued capital returns to shareholders; over $100m of capital
returns to shareholders during 2025 so far

 

Mark Dixon, Chief Executive of International Workplace Group plc, said:

"I am pleased with the financial results in the third quarter of 2025. The
incremental investment we have made in our Managed & Franchised segment
has already led to an acceleration in the number of locations we have opened
and added to the pipeline as we continue to expand our network and coverage.
The evolution of occupancy and pricing sets us up well for further growth in
the remainder of the year and into 2026. Operational cash generation is
enabling the ongoing share buyback."

SUMMARY FINANCIALS

 ($m)                                      Q3 2025  Q3 2024  Change  9m 2025  9m 2024  Change
 System-wide revenue                       1,125    1,081    4%      3,286    3,204    3%
    Managed & Franchised                   213 (1)  157      36%     574 (1)  444      29%
    Company-owned                          806      809      0%      2,399    2,422    (1)%
    Company-owned (Open Centres)           797      791      1%      2,368    2,347    1%
    Digital & Professional Services        106      115      (8)%    313      338      (7)%
    D&PS underlying revenue(2)             106      107      0%      313      304      3%
 Group revenue                             947      947      0%      2,797    2,818    (1)%
 Net financial (debt)                      813      754(3)

1.         Includes the Gross revenue of starter kits, previously
disclosed as net. Impact of $9m

2.         Excluding the impact of an exited contract

3.         Net financial debt as of 30 June 2025

 

Managed & Franchised: Continues to deliver excellent results

Incremental discretionary investment into the segment has accelerated signings
and openings when compared to 2024. System-wide revenue for the quarter has
grown 36% year-over-year. Recurring management fees delivered growth of 83%
year-over-year for the quarter.

At the end of Q3 2025, we had 245,000 rooms open, with a further 190,000 rooms
in the pipeline (signed, not yet opened). Once these rooms are all open and
mature, they are expected to produce system-wide revenues of more than $1.6bn
per year.

                                           Q3 2025  Q3 2024  Change (%)  9m 2025  9m 2024

                                                                                           Change (%)
 System-wide revenue ($m)                  213 (1)  157      36%         574 (1)  444      29%
 RevPAR ($)                                344      431      (20)%       328      401      (18)%
     Managed                               216      279      (23)%       192      238      (20)%
     Franchised & JV                       513      516      (1)%        507      496      2%
 Fee revenue ($m)                          35 (1)   23       50%         85 (1)   58       46%
     Recurring management fees             11       6        83%         30       13       131%
 Rooms open                                245,000  169,000  45%         245,000  169,000  45%
     Managed                               161,000  87,000   85%         161,000  87,000   85%
     Franchised & JV                       84,000   82,000   2%          84,000   82,000   2%
 Centres open                              1,519    1,001    52%         1,519    1,001    52%
     Managed                               1,034    543      90%         1,034    543      90%
     Franchised & JV                       485      458      6%          485      458      6%
 Rooms opened in the period (net)          25,000   15,000   66%         60,000   46,000   30%
     Managed                               24,000   13,000   88%         57,000   42,000   35%
     Franchised & JV                       1,000    2,000    (57)%       3,000    4,000    (25)%
 Centres opened in the period (net)        154      100      54%         403      319      26%
     Managed                               147      91       62%         379      295      28%
     Franchised & JV                       7        9        (22)%       24       24       0%
 Rooms in pipeline                         190,000  173,000  10%         190,000  173,000  10%
 New centre deals signed                   261      181      44%         674      568      19%

1. Includes the Gross revenue of starter kits, previously disclosed as net.
Impact of $9m in Q3 2025.

 

Company-owned: Good revenue visibility as increased occupancy built in H1 2025
continues through Q3 and is expected to drive RevPAR in 2026

Strategy to grow occupancy as previously outlined is working and feeding
through to revenues. These higher occupancy levels are expected to drive
revenue throughout Q4 and into 2026. We continue to selectively add new
locations aligned with our capital-light strategy.

 .                                   Q3 2025  Q3 2024  Growth  9m 2025  9m 2024  Growth
 Revenue ($m)                        806      809      0 %     2,399    2,422    (1) %
 Revenue (Open Centres)              797      791      1%      2,368    2,347    1%
 RevPAR ($)                          354      363      (3)%    349      363      (4)%
 Rooms open                          780,000  772,000  1 %     780,000  772,000  1 %
 Centres open                        2,915    2,860    2%      2,915    2,860    2%
 Rooms opened in the period (net)    3,000    1,000    190%    4,000    0        n.m
 Centres opened in the period (net)  20       10       100%    42       28       50%

 

 

RevPAR - evolving as expected

Whilst we have previously stated we target $250 of RevPAR at maturity across
our Managed Partnerships, it is important to note that RevPAR continues to
rise beyond the 18-month stage putting upward pressure on system revenue for
the segment. RevPAR continues to evolve as expected across the Group.

 System RevPAR ($, monthly average)  Q3 2025  Q3 2025 ex 2024 Openings  Q3 2024  % change
 Managed & Franchised                344      451                       431      (20)%
 Managed                             216      309                       279      (23)%
 Franchised and JVs                  513      527                       516      (1)%
 Company-Owned                       354      364                       363      (3)%
 IWG Network                         352      375                       372      (6)%

 

Digital & Professional Services

Digital & Professional Services is focused on capturing the full value
chain from the structural growth of hybrid working through continued
investment in and development of the platform by adding new services and
geographies to its operations.

 ($m)                   Q3 2025  Q3 2024  Growth  9m 2025  9m 2024  Growth
 Revenue                106      115      (8)%    313      338      (7)%
 Underlying revenue(2)  106      107      0%      313      304      3%

   2. Excluding the impact of an exited contract

 

Financing and Net Debt

 ($m)                          30 September  2025     30 June 2025    Change
 Cash & Cash equivalents       (381)                  (446)           (65)
 Drawn RCF                     0                      0               0
 2027 0.5% Convertible Bond    178                    178             0
 2030 6.5% Corporate Bond      657                    656             (1)
 2032 5.125% Corporate Bond    333                    333             0
 Other                         26                     33              7
 Net financial debt            813                    754             (59)

 

Net financial debt increased over the quarter driven by:

·      Acceleration of the share buyback program to take advantage of
lower prices with repurchase of 16,748,305 shares for $47m as part of the
Group's share buyback programme in Q3

·      Customary working capital movements from supplier payments

Offset by:

·      Cashflows from revenue growth, cost control and continued focus
on the capital-light operating model

$173m of the 2027 0.5% Convertible Bond will be repaid using RCF liquidity on
9(th) December as expected. Following this, with the exception of $5m of the
outstanding Convertible Bond, the company has no debt maturity until the RCF
renewal in 2029. We expect net debt to reduce in Q4 2025, in-line with
guidance.

 

Outlook and guidance

We confirm our guidance for the full 2025 financial year provided with the H1
2025 results as follows:

·      Centre growth and signings to be higher than 2024

·      No change to adjusted EBITDA and net debt guidance

·      Reiterate commitment to maintaining a BBB credit rating

·      Share buyback of at least $130m in 2025

·      Cashflow to shareholders of at least $140m in 2025; and

·      On track to deliver EBITDA of at least $1bn in the medium-term

The Company is hosting an Investor Day on 4 December 2025 in New York City,
where we will outline our medium term-framework and update our capital
allocation policy.

Financial calendar

4 December 2025                    Investor Day in New York City

3 March 2026                          2025 Full Year Results

5 May 2026                             First
Quarter 2026 Trading Update

11 August 2026                       First Half 2026
Results

 

Details of results presentation

Mark Dixon, Chief Executive Officer, and Charlie Steel, Chief Financial
Officer, will be hosting a conference call for analysts and investors at 9am
UK time.

Please pre-register through PC, Mac, iOS or Android to attend the conference
call using the link below:
https://brunswickgroup.zoom.us/webinar/register/WN_ahvqfsjiS3uZ8hsVOJJB9w#/registration
(https://brunswickgroup.zoom.us/webinar/register/WN_ahvqfsjiS3uZ8hsVOJJB9w#/registration)

 

Further information

International Workplace Group plc

Mark Dixon, Chief Executive Officer

Charlie Steel, Chief Financial Officer

Richard Manning, Head of Investor Relations

 

Brunswick Tel: +44 (0) 20 7404 5959

Nick Cosgrove

Peter Hesse

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